3rd Bac - Decision Making

The decision-making process involves identifying a goal, getting the relevant and necessary information, and weighing the alternatives in order to make a decision. The concept sounds simple, yet many people overlook some of the critical stages and risks that occur when making decisions. Wherever possible, it’s important to make the best decisions under the circumstances.

There are at least four strong benefits to making good decisions:
1. Good decisions last longer. You will rarely need to revisit a decision that was made using a well thought out process, and it can sometimes last the entire lifespan of an organization.
2. Good decisions weigh internal and external factors. A decision-maker should consider a company holistically. A sound decision won’t have one part of the business succeed at the expense of another. Both internal and external factors can affect the decision and the company's road map.
3. Good decisions eliminate conflicts of interest. With transparency and stakeholder buy-in during the decision-making process, questions or concerns after the fact become far less likely. The benefits of this process keep the organization on track and focused, and reduce churn.
4. Good decisions actually work better overall. Good decisions actually get the decision-maker, department, and company closer to their goal, and solve the initial problem.

Five Step Process in Decision Making

Many organizations follow the five-step process when making decisions. As you compare the following processes with the varying numbers of steps, you’ll see that some, like this one, combine activities, while others list them as separate steps. Here are the five steps in this process:

1.    Identify the end goal.

2.    Gather all your information needed to inform your decision.

3.    Evaluate all the risks and consequences.

4.    Make the decision and execute it.

5.    Evaluate the decision after the fact.